StockMarketWire.com - Anglo Pacific Group's royalty related income rose to £4.7m in third quarter - 147% up on a year ago.

Royalty related income for the first nine months totalled £9.0m comapred with £5.7m for the nine months to the end of September 2015 and £8.7m for the full year of 2015.

The group had cash and cash equivalents of £4.0m as at 30 September (31 December 2015: £5.7m) and net debt of £8.2m (31 December 2015: £1.8m), both prior to receipt of Q3 2016 royalty income.

Outlook:

- Significant increases in both coking and thermal coal prices since the half year, with spot prices up 229% and 110% year to date respectively, which should benefit royalty income in Q4 2016

- Royalty income for 2016 expected to be considerably higher than previous expectations

- Net debt currently stands at £4.2m following receipt of the Q3 2016 royalty income

- Currency hedging measures implemented to protect a significant portion of forecast next six months' Australian dollar income at spot rates of approximately GBP:AUD 1.60, following the continued weakness of sterling post the outcome of the EU referendum

- Full dividend cover now expected for 2016 ahead of previous guidance, and acceleration in the timeframe when the Group can consider gradually increasing its dividend

Chief executive Julian Treger said: "We are delighted by the Group's progress this year, underlined by the significant increase in royalty income which is already ahead of 2015 as a whole. Encouragingly, we believe that more good news is still to come in Q4 2016, when increased coal prices and mining in our royalty areas should benefit the Company still further. "With the outlook for robust coal prices set to continue through H1 2017, we look forward to the corresponding benefit to our dividend cover. We remain very excited about the Group's prospects, as Anglo Pacific continues to be one of the only listed royalty companies that provides such high levels of exposure to coking coal price increases."




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